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Operations Management Sustainability And Supply Chain Management Global Edition 12th Edition Jay Heizer, Barry Render, Chuck Munson - Solutions
You have just been notified via fax that the lead time for component G of product A (Problem 14.15 and Figure 14.14)has been increased to 4 weeks.a) Which items have changed, and why?b) What are the implications for the production plan?c) As production planner, what can you do? PX
You are product planner for product A (in Problem 14.14, and Figure 14.14). The field service manager, Al Trostel, has just called and told you that the requirements for B and F should each be increased by 10 units for his repair requirements in the field.a) Prepare a list showing the quantity of
A part structure, lead time (weeks), and on-hand quantities for product A are shown in Figure 14.14. From the information shown, generate:a) An indented bill of material for product A (see Figure 5.9 in Chapter 5 as an example of a BOM).b) Net requirements for each part to produce 10 As in week 8
Electro Fans has just received an order for one thousand 20-inch fans due week 7.Each fan consists of a housing assembly, two grills, a fan assembly, and an electrical unit. The housing assembly consists of a frame, two supports, and a handle.The fan assembly consists of a hub and five blades. The
Based on the data in Figure 14.13, complete a net material requirements schedule for:a) All items (10 schedules in all), assuming the requirement for each BOM item is 1.
Given the product structure, master production schedule, and inventory status in Figure14.13 on the next page and assuming the requirements for each BOM item is 1:a) develop a gross requirements plan for Item C;b) develop a net requirements plan for Item C. PX
a) Given the product structure and master production schedule( Figure 14.12 below), develop a gross requirements plan for all items.b) Given the preceding product structure, master production schedule, and inventory status ( Figure 14.12), develop a net materials requirements (planned order
Refer again to Problems 14.5 and 14.7. In addition to 100 units of S, there is also a demand for 20 units of U, which is a component of S. The 20 units of U are needed for maintenance purposes. These units are needed in wee 6.Modify the net material requirements plan to reflect this change. PX
and 14.6. In addition to 100 units of S, there is also a demand for 20 units of U, which is a component of S. The 20 units of U are needed for maintenance purposes. These units are needed in week 6.Modify the gross material requirements plan to reflect this change. PX
Refer again to Problems
Using the information in Problem 14.5, construct a net material requirements plan using the following on-hand inventory.
Using the information in Problem 14.5, construct a gross material requirements plan. PX
The demand for subassembly S is 100 units in week 7.Each unit of S requires 1 unit of T and 2 units of U. Each unit of T requires 1 unit of V, 2 units of W, and 1 unit of X. Finally, each unit of U requires 2 units of Y and 3 units of Z. One firm manufactures all items. It takes 2 weeks to make S,
Your boss at Xiangling Hu Products, Inc., has just provided you with the schedule and lead times for the bracket in Problem 14.3. The unit is to be prepared in week 10.The lead times for the components are bracket (1 week), base (1 week), spring (1 week), clamp (1 week), housing (2 weeks), handle(1
As the production planner for Xiangling Hu Products,Inc., you have been given a bill of material for a bracket that is made up of a base, two springs, and four clamps. The base is assembled from one clamp and two housings. Each clamp has one handle and one casting. Each housing has two bearings and
You are expected to have the gift bags in Problem 14.1 ready at 5 p.m. However, you need to personalize the items (monogrammed pens, note pads, literature from the printer, etc.). The lead time is 1 hour to assemble 200 Js once the other items are prepared. The other items will take a while as
You have developed the following simple product structure of items needed for your gift bag for a rush party for prospective pledges in your organization. You forecast 200 attendees. Assume that there is no inventory on hand of any of the items. Explode the bill of material. (Subscripts indicate
The structure of MRP systems suggests “buckets” and infinite loading. What is meant by these two terms?
Use the Web or other sources to identify what an ERP vendor(SAP, PeopleSoft/Oracle, American Software, etc.) includes in these software modules:a) Customer relationship management.b) Supply-chain management.c) Product life cycle management.
Use the Web or other sources to:a) Find stories that highlight the advantages of an ERP system.b) Find stories that highlight the difficulties of purchasing, installing, or failure of an ERP system.
What are the disadvantages of ERP?
As an approach to inventory management, how does MRP differ from the approach taken in Chapter 12 , dealing with economic order quantities (EOQ)?
What are the distinctions between MRP, DRP, and ERP?
What are the typical benefits of ERP?
Identify five specific requirements of an effective MRP system.
What is the rationale for (a) a phantom bill of material, (b) a planning bill of material, and (c) a pseudo bill of material?
What functions of the firm affect an MRP system? How?
Master schedules are expressed in three different ways depending on whether the process is continuous, a job shop, or repetitive. What are these three ways?
What are the options for the production planner who has:a) scheduled more than capacity in a work center next week?b) a consistent lack of capacity in that work center?
MRP is more than an inventory system; what additional capabilities does MRP possess?
What impact does ignoring carrying cost in the allocation of stock in a DRP system have on lot sizes?
Which is the best lot-sizing policy for manufacturing organizations?
How does MRP II differ from MRP?
What are the similarities between MRP and DRP?
Once a material requirements plan (MRP) has been established, what other managerial applications might be found for the technique?
What is the difference between a gross requirements plan and a net requirements plan?
The aim of revenue management is to:a) Charge all customers the same prices for productsb) Allocate resources to customer at prices that minimise revenuec) Increase product price when demand decreasesd) Treat product demand and product pricing separatelye) Increase product price when demand
When might a dummy column be added to a transportation table?a) When supply does not equal demandb) When overtime is greater than regular timec) When subcontracting is greater than regular timed) When subcontracting is greater than regular time plus overtimee) When production needs to spill over
A number of techniques may be used to develop aggregate plans. This includes graphical techniques which:a) Are complex and difficult to use.b) Work with a few variables at a time to compare projected demand with existing capacity.c) Guarantee an optimal production plan.d) Require significant
Aggregate planning deals with a number of constraints.These typically are:a) job assignments, job ordering, dispatching, and overtime help.b) part-time help, weekly scheduling, and SKU production scheduling.c) subcontracting, employment levels, inventory levels, and capacity.d) capital investment,
In order to generate a useful aggregate plan a number of features are required. This should include:a) A logical unit for measuring sales and output.b) A demand forecast for the intermediate planning period.c) A method to calculate the relevant costsd) A model that combines forecasts and cost so
The outputs from an S&OP process are:a) long-run plans.b) detail schedules.c) aggregate plans.d) revenue management plans.e) short-run plans.
What are some concerns the team needs to consider when using dynamic pricing with frequent changes in price?
The Magic used its original pricing systems of several years ago and set the price for a Terrace V, Zone 103 seat at $68 per game.There were 230 such seats not purchased as part of season ticket packages and thus available to the public. If the team switched to the 7-price dynamic system
After researching revenue (yield) management in airlines, describe how the Magic system differs from that of American or other air carriers.
Discuss the implications of closing a plant.
Evaluate the various configurations of operating and closed plants that will meet weekly demand. Determine which configuration minimizes total costs.
Hotel Galway is a 50 room Boutique hotel in a popular city break destination in Ireland. Until recently the hotel has priced each room at $120 for bed and breakfast. On average 40 rooms are occupied every weekend. The variable cost of each occupied room is $30. Following an internal review
Refer to the architectural practice in Problem 13.24.When planning for the second half of the year the practice estimates the billable hours will increase by 3% in each of the 6 months. A decision is made to hire a fourth architect. The same regular time, and overtime costs will apply.a) Develop a
Rodgers, Wallace and Moyles Ltd is a Dublin based architecture practice setup and run by three architects. Each of them works on average 156 hours per month for a rate of$3120 per month. When additional work needs to be done overtime is paid at a rate of $40 per hour. In line with employment
Flanagan Fit outs Ltd., is a family run business that manufacturers, installs and services retail storage solutions in Ireland, the UK and mainland Europe. The next bi annual aggregate plan for their products including demand and capacity (in units) is forecast as follows:
José Martinez of El Paso has developed a polished stainless steel tortilla machine that makes it a “showpiece” for display in Mexican restaurants. He needs to develop a 5-month aggregate plan. His forecast of capacity and demand follows:
Yu Amy Xia has developed a specialized airtight vacuum bag to extend the freshness of seafood shipped to restaurants. She has put together the following demand cost data:
A large St. Louis feed mill, Robert Orwig Processing,prepares its 6-month aggregate plan by forecasting demand for 50-pound bags of cattle feed as follows: January, 1,000 bags;February, 1,200; March, 1,250; April, 1,450; May, 1,400; and June, 1,400. The feed mill plans to begin the new year with no
The production planning period for flat-screen monitors at Louisiana’s Roa Electronics, Inc., is 4 months. Cost data are as follows:
Jerusalem Medical Ltd., an Israeli producer of portable kidney dialysis units and other medical products, develops a 4-month aggregate plan. Demand and capacity (in units) are forecast as follows:The cost of producing each dialysis unit is $985 on regular time,$1,310 on overtime, and $1,500 on a
Ram Roy’s firm has developed the following supply,demand, cost, and inventory data. Allocate production capacity to meet demand at a minimum cost using the transportation method. What is the cost? Assume that the initial inventory has no holding cost in the first period and backorders are not
Southeast Soda Pop, Inc., has a new fruit drink for which it has high hopes. John Mittenthal, the production planner, has assembled the following cost data and demand forecast:
Deb Bishop Health and Beauty Products has developed a new shampoo, and you need to develop its aggregate schedule. The cost accounting department has supplied you the costs relevant to the aggregate plan, and the marketing department has provided a four-quarter forecast. All are shown as
The S&OP team (see Problem 13.9) is considering two more mixed strategies. Using the data in Problem 13.9, compare Plans C and D with Plans A and B and make recommendations.
The S&OP team at Kansas Furniture, has received the following estimates of demand requirements:
You manage a consulting firm down the street from Consuelo Chua, Inc., and to get your foot in the door, you have told Ms. Chua (see Problem 13.7) that you can do a better job at aggregate planning than her current staff. She said, “Fine. You do that, and you have a one year contract.” You now
Consuelo Chua, Inc., is a disk drive manufacturer in need of an aggregate plan for July through December. The company has gathered the following data:
Hill’s operations manager (see Problemsb13.3 through 13.5 is also considering two mixed strategies for January–August: Produce in overtime or subcontracting only when there is no inventory?
Hill is now considering plan C: Keep a stable workforce by maintaining a constant production rate equal to the average requirements and allow varying inventory levels. Beginning inventory, stockout costs, and holding costs are provided in Problem 13.3.Plot the demand with a graph that also shows
Using the information in Problem 13.3, develop plan B. Produce at a constant rate of 1,400 units per month, which will meet minimum demands. Then use subcontracting, with additional units at a premium price of $75 per unit. Evaluate this plan by computing the costs for January through August. PX
The president of Hill Enterprises, Terri Hill, projects the firm’s aggregate demand requirements over the next 8 months as follows:
has yet a sixth plan. A constant workforce of seven is selected, with the remainder of demand filled by subcontracting.c) Is this better than plans 1–5?
Develop another plan for the Mexican roofing manufacturer described in Examples 1 to 4 (pages 538 – 542 ) and Solved Problem 13.1(page 554 ).a) For this plan, plan 5, the firm wants to maintain a constant workforce of six, using subcontracting to meet remaining demand. Is this plan preferable?b)
Prepare a graph of the monthly forecasts and average forecast demand for Garden Room Furniture Ltd., a manufacturer of outdoor furniture.
What is revenue management? Provide examples of industries where revenue management is popular.
What are major limitations of using the transportation method for aggregate planning?
Why are graphical aggregate planning methods useful?
What is the relationship between the aggregate plan and the master production schedule?
List and briefly discuss four techniques used to control labor as part of aggregate planning in the service industry.
What are the advantages and disadvantages of varying the size of the workforce to meet demand requirements each period?
Define mixed strategy . Why would a firm use a mixed strategy instead of a simple pure strategy?
Identify the two categories of aggregate planning strategies, and explain the difference between them.
Define chase strategy .
List the strategic objectives of aggregate planning. Which one of these is most often addressed by the quantitative techniques of aggregate planning? Which one of these is generally the most important?
Explain what the term disaggregation means when applied in a manufacturing environment. What is the output of this process?
Define aggregate planning .
Why are S&OP teams typically cross-functional?
Define sales and operations planning .
The safety stock in re-order point system:a) shall with a certain probability cover demand exceeding the expected during the lead-timeb) is a non-linear function of lead-timec) is not depending on the order-quantityd) all of the above
The EOQ model isa) not very useful in practice since the assumptions are unrealisticb) finds the optimal safety stockc) is quite useful, due to the fact that the optimum is quite flatd) depending on the standard deviation of the demande) has an impact of the re-order-point
The difference(s) between the basic EOQ model and the production order quantity model is(are) that:a) the production order quantity model does not require the assumption of known, constant demand.b) the EOQ model does not require the assumption of negligible lead time.c) the production order
Extra units in inventory to help reduce stockouts are called:a) reorder point.b) safety stock.c) just-in-time inventory.d) all of the above.
The two most important inventory-based questions answered by the typical inventory model are:a) when to place an order and the cost of the order.b) when to place an order and how much of an item to order.c) how much of an item to order and the cost of the order.d) how much of an item to order and
Cycle countinga) means that we count all articles after a specified time periodb) leads us to count A items more frequent then B itemsc) require all A items to be counted the same dayd)d) is a legal requirement
ABC analysis divides on-hand inventory into three classes,based on:a) unit price.b) the number of units on hand.c) annual demand.d) annual dollar values.
How would you go about implementing these suggestions?
If you were to take over as inventory control manager at Wheeled Coach, what additional policies and techniques would you initiate to ensure accurate inventory records?
Explain how Wheeled Coach implements ABC analysis.
Why doesn’t Frito-Lay make all its 41 products at each of its plants?
Why does the company keep so many plants open?
Why does inventory flow so quickly through a Frito-Lay plant?
How would you rank the dollar investment in each of the four types (from the most investment to the least investment)?
What are the four types of inventory? Give an example of each at Frito-Lay.
What are the major inventory items at Frito-Lay, and how rapidly do they move through the process?
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